FRANCHISEE MEDIATION SERVICE
DESCRIPTION
Many franchisees and franchisors will, at some point, reach an impasse regarding one or more aspects of the other’s performance. A franchisee may feel insufficiently supported; whilst the franchisor may feel that the franchisee has not worked hard enough to deserve any additional support. Often both parties have a valid point-of-view, but are unsure as to the way forward and the situation worsens as time passes.
Having an independent expert acting as mediator can provide a swift and mutually acceptable resolution without further damaging the relationships or wasting valuable time. Any “bad news” is delivered in the context of franchising best-practice, rather than being seen to further any one party’s personal agenda.
OUTCOMES
- Clearer policies for franchisor and franchisee
- Improved relationships with franchisees
- Less time spent on disputes and disagreements
- Enhanced support team morale and motivation
- Franchisees can concentrate on building their business
- Reduced franchisor support and admin costs
- Increased franchisor revenue and profit
- Increased capital asset value of franchisor’s business
PROCESS
Audit
A review of the specific issues causing concern, together with a background review of the franchisee management and support processes is carried out including:
- The specific issues and history leading up to the dispute
- The steps taken so far, and outcomes expected
- Any precedents set either within the existing network or within franchising as a whole
- The restrictions and obligations within the Operations Manual
- The restrictions and obligations within the Franchise Agreement
- The desired outcome of each party
- The timescales for resolution
Final implementation
The final output of this process will be a clear decision founded upon a combination of commercial reality, franchising best practice and historical precedent, resulting in a fair and ethical resolution of the situation. This will be handled in a sensitive manner ensuring that any decisions are communicated clearly and with background reasoning and evidence, bringing a definitive end to the dispute and enabling all parties to continue their relationship on a basis of mutual agreement and understanding.
